Year: 2024
Type: article
Abstract: This study examines the comparative performance of Wealthfront's Classic and Socially Responsible Portfolios under an 8% target volatility constraint. Utilizing historical data from 2010 to 2024 and employing a Tactical Asset Allocation model, it assesses risk-adjusted returns, including Sharpe and Sortino Ratios. Preliminary findings indicate that while the Classic Portfolio offers higher returns, it also exhibits greater volatility compared to the Socially Responsible Portfolio. This research highlights the trade-off between financial performance and ethical considerations in investment decisions, providing insights relevant to investors seeking to balance risk and return within the framework of ro-bo-advisormanaged portfolios. Implications include the importance of risk-adjusted metrics in in-vestment decisions and the role of robo-advisors in enhancing portfolio performance. Future research should explore diverse volatility targets and investor preferences to refine investment strategies.
Authors: MSc International Marketing with Specialization of International Marketing, Bsc Business Administration with Specialization of Accounting & Finance, BSc Psychology, Greece, Anastasia A. Manousiadou
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4402364404